National Builders Guide reports that modular construction is increasingly being embraced across Australia as the building sector responds to mounting pressure from housing shortages, labour constraints, rising costs, and sustainability targets. The article highlights that factory-based construction offers faster build times, improved efficiency, and reduced material waste compared with traditional on-site methods.

A key driver behind this shift is government policy. In the 2025 Federal Budget, the Australian Government committed to delivering 1.2 million new homes over the next five years under the National Housing Accord, with the aim of rapidly increasing housing stock while addressing affordability and environmental performance. Modular construction is identified as particularly well suited to meeting these targets at scale due to its repeatability, speed, and lower environmental impact.

The article also notes that advances in materials, automation, and digital construction technologies are strengthening the case for modular delivery, positioning it as a long-term solution rather than a niche alternative.

Within this context, programs such as AUSMOD20K, which targets the delivery of 20,000 affordable modular homes across Australia, supporting faster, more efficient, and more sustainable housing delivery in line with national objectives.

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